Saving Money Are Capital Investments Really Better Than Saving Money?

[Good-Guy]

Many people often believe that saving money is one of the most important things in life because saving money would help them to live a much better life in the future. Indeed, I must say that saving money is one of the best things you can do because it guarantees having more money in the future, but I believe that despite the fact that saving money is a great thing, there is one disadvantage of saving money. I think that since the rate of inflation is increasing in the world, I believe that saving money would eventually lead to devaluation of money in the long time. In this scenario, many financial experts and economist often say that capital investments is much better than saving money.

This is because investing money would lead to increase in capital when the profits are made and that capital could be re-invested to increase income in the future. So, I do not know why many people focus so much on saving money that they forget that capital investments are also something that should be considered. If you ask me, then I would say that people should save money AND create an investment budget to make investments. If you follow both the strategies, then you will gain more profits. But is capital investment still much better than saving money?

 

[Kendy]

Yes, capital investment are really much more profitable than just saving of money inasmuch as I do not have any investment for now, but my purpose of saving is in order to get my money invested in a profitable business. Saving of money in the bank is an objective but investment is more of a goal which is either on a long-term or short-term basis depending on the available financial capital. I do not see how saving money would be enough to augment for all human needs and want, whereas investment is much more profitable and lucrative because it would be able to give us much more opportunities to save, to get profit and to reinvest them. All this does not mean that investment does not come with its own challenges but at least, if you are investing in businesses like; real estate investment, stocks and shares, it could be much more on a safe side because it is less risky. The act of saving money should be encouraged but to think that you will depend solely on your savings would be an unwise decision because sooner or later you will run out of funds and the next step will be to incur bad debt through collection of loans.

 

[Alexandoy]

This is not to brag but I have already posted about the big money that I received as benefits from the employer of my late wife. It's been 2 months now and the money is still sitting in the bank and earning very minimal interest. I know that inflation in the future will diminish the value of my money in the bank so I need to invest even just some of it. My target is actually to invest 1/3 of the money in either land or stocks. I have been monitoring the price of my stocks in the market and it is fairly high based on the price when I received my stocks. When the price dips to that level then I can probably buy more stocks for my lifetime investment.

I have been checking the lands that are offered to me but I find the price exorbitant. It looks like my $100,000 cannot even buy 1 hectare of land. That stopped me on my tracks and now I am thinking of other means to invest my money.

 

[funmi]

I would rather prefer to invest than save when I have funds that goes beyond my consumptions. That is after I had deducted my consumption from my total earnings minus tax. The only problems I am having this days is that the equation of savings is no longer working as it seems as if the consumption even outweighs total income minus consumption still gives me a negative value as my answer. The rate at which the prices of commodities are skyrocketing everyday is so alarming and am finding it very difficult to balance up my basic needs let alone have anything in .y reserve that could be used to represent savings let alone investment. The life is so hard that people are barely surviving. But again how can one.invest in a situation like this if one does not atleast save up some money for a while. And I for one does not encourage borrowing and I do not borrow to start a business or to invest in any business what so ever as I can not afford to stand the risk associated with borrowings. Hence for now it is just better to manage the little I am having to survive but all the same I prefer investment.

 

[Sotherefore]

Well what I understand is that investing your money is quite more profitable than saving your money , because if you're saving your money it will still remain the same value even when the economy of your country is reducing .

Those people who have served their money in the bank will not possibly get the same value of their money again because when the economy of a particular country is down , automatically the currency of such country is also down and is depreciating on daily basis.

At this point it is quite profitable for people to just invest their money in something that could at least help them to recover the amount of money that is depreciating . if I have $5000 now here in my country I do not really have to save some money but I would rather invest the money in real estate properties. Then in the next five years from now I could possibly make hundred percent of my money which is altogether 10000 dollars.

Here I won't even lose a single money but if the money was still in my bank account obviously the 10,000 dollars could have still been the same which is not really profitable to me at all.

 

[Kingsley]

Savings and capital investment or investing on capital project are two interwoven concepts as one can not work without the other. We need the capital project to be able to gather more savings and we also need money that has been saved and accumulated over time to invest on capital projects. So looking at it from both angles we will realise that they both are very much essential to be able to one the other. But if the question now is if i had enough savings would I still want to continue saving without thinking of investing on capital project . Then my answer would be in this form, since I know the principle of time management very well, I will most likely prefer to always spend every dime I have today on investments as I know that the money today will be lesser in value tomorrow due to the problem of inflation, mostly for a country like ours where the currency keeps depreciating by the day. So it will be better to always spend it now and yield the interest on it much later. Then when I have gotten the investment whatever I benefit will go into savings again in preparation for another investments

 

[Holicent]

Capital investments and saving money serve different purposes in personal finance, and both have their advantages and disadvantages. Saving money is a safe and reliable way to build an emergency fund and achieve short-term financial goals.

On the other hand, capital investments have the potential to generate higher returns over the long-term, but also come with a higher risk. Investing in stocks, bonds, or real estate can provide higher returns than a savings account, but it's important to understand the risks and have a long-term investment strategy. Ultimately, the best approach is to have a balance between saving money and making capital investments that align with your financial goals, risk tolerance, and investment horizon.